The course is the result of collaboration between The Open University and Rolls-Royce PLC. This collaboration has ensured that contemporary theories about risk management are explored within the context of an international company that is required to apply these theories in its business practices.Recent decades have seen an array of news stories where risk management failings have undermined an organisation and dented the credibility of its management. These failings have led to the demise of some companies – for example Lehman Brothers, World Com and Enron. Worse than this in many instances the failings have resulted in deaths and injuries – as with the Piper Alpha oil platform disaster in the North Sea in 1988 or the BP Deepwater Horizon explosion and oil spill in 2010. Successful organisations embed a culture of risk management in all areas of their activities. To achieve this requires effective and practical risk management education. The course particularly benefits all those engaged as risk managers, those seeking to develop their risk management capabilities and those, like board members, who have ultimate responsibility for risks within their organisations. Additionally all those with, or seeking, a career in management in any organisation will benefit from the understanding of risks and how to manage them.This eight-session course examines how to practise good risk analysis and then apply successful processes to manage it. The course is supported by case studies and audio-visual materials to help explain the varied and often complex risk management practices employed at Rolls-Royce and widely elsewhere.TranscriptEnrolling on the course will give you the opportunity to earn an Open University digital badge. Badges are not accredited by The Open University but they’re a great way to demonstrate your interest in the subject and commitment to your career, and to provide evidence of continuing professional development.Once you are signed in, you can manage your digital badges online from My OpenLearn. In addition, you can download and print your OpenLearn statement of participation – which also displays your Open University badge.The Open University would really appreciate a few minutes of your time to tell us about yourself and your expectations for the course before you begin, in our optional start-of-course survey. Once you complete the course we would also value your feedback and suggestions for future improvement, in our optional end-of-course survey. Participation will be completely confidential and we will not pass on your details to others.This course is accredited by the CPD Standards Office. It can be used to provide evidence of continuing professional development and on successful completion of the course you will be awarded 24 CPD points. Evidence of your CPD achievement is provided on the free Statement of Participation awarded on completion.Anyone wishing to provide evidence of their enrolment on this course is able to do so by sharing their Activity Record on their OpenLearn Profile, which is available before completion of the course and earning of the Statement of Participation.
Overview
Syllabus
- Introduction and guidance
- Introduction and guidance
- What is a badged course?
- How to get a badge
- Acknowledgements
- Session1Session 1: Living in a world of risk
- Introduction
- 1 What do we mean by risk?
- 2 The importance of managing risk
- 3 Risk in everyday life
- 4 Managing risk: a brief history of risk management
- 5 Business impacts
- 6 Understanding and expressing risk
- 7 The risk management process
- 8 This session’s quiz
- 9 Summary of Session 1
- Glossary
- Acknowledgements
- Session2Session 2: Establishing the context
- Introduction
- 1 Enterprise Risk Management (ERM)
- 2 Risk appetite
- 3 Why is an Enterprise Risk Management framework needed?
- 4 The components of a company-wide ERM framework
- 5 The Risk Management Plan (RMP)
- 6 The key components of an RMP
- 7 This session’s quiz
- 8 Summary of Session 2
- Glossary
- Acknowledgements
- Session3Session 3: Risk identification
- Introduction
- 1 The basics of risk identification (What do I need to identify?)
- 2 What should a ‘well written’ risk statement contain?
- 3 Different risk identification approaches
- 4 Styles of risk management
- 4.1 Top down v. bottom up
- 4.2 Standardised risk approach
- 4.3 Standardised elements – controls, root causes, consequence
- 4.4 Categorising different types of risk
- 5 Documenting the risk (‘risk registers’)
- 6 Human factor elements in risk identification
- 7 This session’s quiz
- 8 Summary of Session 3
- Glossary
- Acknowledgements
- Session4Session 4: Risk assessment
- Introduction
- 1 Basic elements of risk assessment
- 2 The importance of assessing all consequences
- 3 How to go about assessing a risk
- 3.1 How to quantify impact
- 3.2 How to deal with risks that are on a continuum
- 3.3 Risk aggregation
- 3.4 Using mathematical models
- 3.5 Human factors in risk assessment
- 4 This session’s quiz
- 5 Summary of Session 4
- Glossary
- Acknowledgements
- Session5Session 5: Risk treatment
- Introduction
- 1 Risk treatment overview
- 2 Treatment options
- 3 Treatment strategies
- 3.1 Acceptance
- 3.2 Rejection
- 3.3 Transfer
- 3.4 Mitigation
- 4 Mitigation through action
- 4.1 Assessing action effectiveness
- 5 Mitigation through controls
- 5.1 Elements that make a control
- 5.2 Different types of control
- 6 Control effectiveness
- 6.1 Testing control effectiveness
- 7 Human factors as a controls weakness
- 8 This session’s quiz
- 9 Summary of Session 5
- Glossary
- Acknowledgements
- Session6Session 6: Monitoring and review
- Introduction
- 1 Are the right risks being taken?
- 1.1 Risk reviews
- 1.2 Risk key performance indicators (KPIs)
- 1.3 Deep dives
- 2 Is the risk management effective?
- 2.1 The role of risk assurance
- 2.2 Risk and assurance – three lines of defence
- 3 Risk-based assurance
- 3.1 Controls
- 3.2 Mitigation actions
- 3.3 Risk framework
- 3.4 Human factors and internal controls
- 3.5 Antidotes to behavioural issues
- 4 This session’s quiz
- 5 Summary of Session 6
- Glossary
- Acknowledgements
- Session7Session 7: Managing risks: communicating and reporting
- Introduction
- 1 How are the requirements implemented at Rolls-Royce?
- 2 Working with stakeholders
- 3 Risk ownership in a matrix business
- 4 Communication and consultation
- 5 Recording and reporting
- 5.1 Risk recording
- 5.2 Risk reporting
- Reporting to the board
- 5.3 Reporting considerations
- 6 Risk systems and tools
- 7 Human factors associated with risk reporting
- 8 This session’s quiz
- 9 Summary of Session 7
- Glossary
- Acknowledgements
- Session8Session 8: Risk specialisms
- Introduction
- 1 Business continuity and crisis management
- 2 Internal controls
- 3 Project risk management
- 4 Emerging risk management and horizon scanning
- 5 Safety risk management
- 6 This session’s quiz
- 7 Summary of Session 8
- Where next?
- Tell us what you think
- Glossary
- Acknowledgements
